City approves $84.7 million budget for 2014-15

Using bubble gum and bailing wire to patch it all together, the Salinas City Council this week approved an $84.7 million 2014-15 fiscal year general fund operating budget that, near miraculously, avoids any employee layoffs.

The council voted unanimously Tuesday to approve the new balanced spending blueprint.

Council members Steve McShane and Jose Castaneda were both absent from the meeting.

City Finance Director Matt Pressey said city staff was able to get the budget into the shape it is in through a combination of moves.

He noted some of the solutions included increasing fees, leasing out city facilities, using grant funding for police and making budget reductions that minimized cuts to vital police, fire, and library services.

Pressey noted that while no city employees will lose their job this year, the city's ongoing employee reductions have been significant.

Pressey said over the past six budget cycles — since 2008-09 fiscal year — 23 percent of the city's workforce has been eliminated, representing 155 positions. As a service-oriented government business, city staffing costs represent 80 percent of the operating budget.

"The potential for layoffs [has] continued to exist in the last four budget cycles, including this FY 2014-15 cycle. However, through the continued and significant employee concessions from bargaining groups, deferring capital projects and through shepherding vacancies, a balanced budget has been achieved without further layoffs," Pressey said in a report to the council. "Employee concessions total more than $6 million per year and aggregate to over $30 million since 2008, including giving up their cost of living increases. There have been no cost of living increases for the past 5 years."

The budget goes into effect July 1 with the start of the new fiscal year.

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FY 2014-15 BUDGET HIGHLIGHTS:

>> Approved operating (general fund) budget: $84.7 million'

>> Total city budget (including all special revenues, incomes, payouts, fees and income and outgo from assessments districts, etc.: $135 million

>> FY 2014-15 budget is balanced and has maintained a rainy day reserve of 6.2 percent

>> No layoffs are planned

>> Some previously "frozen" positions have been now taken permanently off the books

>> A generalized hiring freeze will be lifted to assist the police and fire departments improve staffing numbers.

>> No cost of living increases planned (for fifth year in a row.)

>> Employee union pay concessions to city over past five years: $6+ million

Source: City of Salinas

City's Top budget dogs: Public safety departments

>> Salinas' public safety departments eat up 63 percent or nearly $53 million of entire operating budget despite there being severe staffing shortages in both the police and fire departments.

>> The Police Department is currently authorized for 150 positions but only has 136 positions funded.

>> The Fire Department currently authorized for 97 positions but only has 65 positions funded.